Softbank Could Invest $10bn in Uber as Alphabet Ponders Backing Lyft

BY SHACK15 - 15 September, 2017

Two technology giants are poised to invest in rival ride-hailing companies,according to press reports.

Japanese Internet colossus Softbank is allegedly mulling over a whopping $10 billion investment in Uber, while Alphabet (erstwhile Google)—which is currently embroiled in a court battle with Uber over self-driving car technology— could pour almost $1 billion in Lyft.

According to The Wall Street Journal, the early talks between Softbank and Uber could give the Japanese multinational a 22 percent stake in the San Francisco-based company.

Softbank would buy shares both directly from Uber and from existing investors—possibly seeking a discount that would value the company at $50 billion (rather than the current valuation of $69 billion.)

The negotiations are ongoing and could be perfected as early as next week, in what would be the first major decision under the stewardship of Uber’s newly appointed CEO Dara Khosrowshahi.

In the meanwhile, Business Insiderbroke that Alphabet is engaged in its own talks with Uber’s arch-rival Lyft.

The possible $1 billion round might come either from Google or from Alphabet’s investment vehicle CapitalG.